Best SIP Plans for 5 Years Investment in 2025

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Factors to consider while choosing best sip plans for 5 years

The best SIP for five years will typically invest in equity mutual funds that have exposure to large-cap stocks or track the benchmark index (index fund). You can invest in these funds for goals such as buying a car, saving for a vacation, etc. The article lists the best SIP for 5 years.

Furthermore, you can use Scripbox’s SIP Calculator to estimate the potential returns from a fund. Based on the fund’s historic performance, the calculator estimates the returns for your investment duration. The calculator gives graphical and tabular return estimations that help you analyze returns. Also, the calculator estimates returns based on three growth scenarios – above-average, average, and below-average returns. The calculator can test multiple scenarios and make better investment decisions.

What is SIP and How it Works

A Systematic Investment Plan (SIP) is a convenient and disciplined way to invest in mutual funds. It allows you to invest a fixed amount of money at regular intervals, whether weekly, monthly, quarterly, or annually. SIP is similar to EMI (Equal Monthly Instalments) for loan payments, but the major difference is that SIP does not involve paying interest. In contrast, EMI involves paying interest on the loan.

In a SIP, a fixed amount of money is debited from your savings or current bank account monthly or quarterly. The debited amount is invested in your chosen mutual fund scheme. The number of units of the mutual fund scheme is allocated to you based on the fund’s purchase price (or Net Asset Value, NAV) on that particular date. This method ensures that you invest regularly without worrying about market volatility, making it an ideal way to build wealth over time.

Best SIP Plans for 5 Years 2025

Fund Name	5 Year CAGR	Expense Ratio
Canara Robeco Bluechip Equity Fund	15.90%	1.71%
Baroda BNP Paribas Large Cap Fund	15.50%	2.12%
UTI Nifty Index Fund	14.50%	0.41%
HDFC Index Nifty 50 Fund	14.30%	0.40%
ICICI Prudential Bluechip Fund	15.20%	1.58%

Minimum SIP amount for all scheme starts at Rs. 1000/-

1. Canara Robeco Bluechip Equity Fund

The Canara Robeco Bluechip Equity Fund is a large-cap equity-oriented fund that invests majorly in companies with large market capitalization. The fund intends to generate long-term growth and wealth gain through asset allocation methodologies.

Scripbox recommends Canara Robeco Bluechip Equity Fund- Regular for a long-term investment within the large-cap mutual fund category. Long-term gains have regularly exceeded inflation under this plan. With a 12-year track record, the fund is a category. The fund size is large in comparison to other funds in its category. The fund ranks first in its category based on its average rolling returns. The bluechip fund is suitable for investors seeking equity investments but not wanting exposure to highly volatile stocks (small and mid-cap companies).

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 1.71%
Benchmark: S&P BSE 100 India TR INR
Risk Level: Very High Risk
AMC: Canara Rebeco Mutual Funds

2. Baroda BNP Paribas Large Cap Fund for SIP

The scheme’s investment objective is to produce long-term capital growth from a diversified and actively managed portfolio. It invests in equities and equity-related instruments, primarily in companies with a large market capitalization. This fund is designed for participants with a minimum investment horizon of five years. Due to the nature of the fund, you should anticipate short-term volatility in your investments. According to the experts at Scripbox, Baroda BNP Paribas Large Cap Fund is a Top-Rated fund. Invest in the Baroda BNP Paribas Large Cap Fund if its investment objective and risk-o-meter align with your investment objectives and risk tolerance.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 2.12%
Benchmark: Nifty 100 TR INR
Risk Level: Very High Risk
AMC: Baroda Mutual Funds

3. UTI Nifty Index Fund for SIP

UTI Nifty Index Fund is an index mutual fund with unlimited investment potential. The fund replicates and follows the Nifty 50 Index by purchasing the same quantity and proportion of equities as the index. The Scheme does not invest in any active sector or stock not included in the selected index. UTI Nifty Index Fund has the lowest expense ratio. The Scheme is open to investors wanting to eliminate unsystematic risk about a particular sector, industry, or firm. The product provides relatively inexpensive market exposure to the equity of leading corporations. These funds are also good for investors who favor predictable returns and are suitable for a minimum 5-year investment horizon.

Scripbox suggests the UTI Nifty Index Fund as an investment under index mutual funds.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 0.41%
Benchmark: IISL Nifty 50 TR INR
Risk Level: Very High Risk
AMC: UTI Mutual Funds

4. HDFC Index Nifty 50 Fund for SIP

The HDFC Index Nifty 50 is a mutual fund replicating the Nifty 50 Index. It mirrors the performance of the Nifty 50 Index by investing in the stocks of companies included in the index. It purchases the same number and proportion of equities as the index. Since the funds mirror and follow the Nifty 50, they are not discriminatory toward any sector or industry not represented by the chosen index. The scheme offers inflation-beating returns. The fund has a 19-year track record and has given significant returns.

Index funds are ideal for investors with long-term asset accumulation objectives, such as retirement planning. The suggested investment duration is five years or more.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 0.40%
Benchmark: IISL Nifty 50 TR INR
Risk Level: Very High Risk
AMC: HDFC Mutual Funds

5. ICICI Prudential US Bluechip Equity Fund for SIP

The ICICI Prudential US Bluechip Equity Fund invests primarily in securities of large-cap US corporations. Through an investment in the fund, Indian investors can invest in US companies. Mutual funds that invest in bluechip corporations or large market capitalization companies are known as mutual funds. These firms have superior historical performance and future development prospects. The suitable investment horizon is long-term, about 10 years. The fund is appropriate for an investor whose goal is to generate long-term wealth through exposure to US stock market-listed securities.

Scripbox suggests investing in the ICICI Pru US Bluechip Equity Fund from the US Equity mutual fund category. US equities mutual funds provide international market exposure and long-term investment appreciation. Over the years, the fund has consistently given inflation-beating returns.

Fund Details

Minimum SIP Amount: ₹1,000
Minimum Lumpsum: ₹5,000
Expense Ratio: 1.58%
Benchmark: S&P 500 TR USD
Risk Level: Very High Risk
AMC: ICICI Mutual Funds

Benefits of Investing Through SIP

Risk Diversification: SIPs allow you to spread your investment across different mutual funds or asset classes, which reduces the risk of relying on a particular type of asset and reducing the risk of relying on a single security. This helps minimize potential losses and manage market volatility effectively.
Rupee Cost Averaging: With SIPs, you invest a fixed amount regularly, which means you buy more units when prices are low and fewer units when prices are high. This approach averages out the investment cost over time and reduces the impact of market fluctuations.
Mitigates Market Volatility: SIPs can help reduce the stress of timing the market. This consistency ensures that you continue investing regardless of market conditions, which can result in better long-term returns.

Factors to Consider Before Choosing the Best SIP Plan for 5 Years

Selecting the best SIP plan for 5 years requires careful evaluation to ensure it aligns with your financial goals and risk tolerance. Here are the key factors to keep in mind:

Assess Your Risk Appetite: Before investing, understand your comfort with market fluctuations. Equity funds might be suitable if you’re willing to take higher risks for potentially greater returns. On the other hand, if you prefer stability, debt funds or balanced funds could be better. Consulting a financial advisor can help you match your risk profile to the right SIP plan.
Define Your Financial Goals: Clarify what you want to achieve with your investment. Are you saving for a down payment on a house, funding education, or building an emergency corpus? Clear goals will help you pick a SIP plan that aligns with your time frame and expectations.
Review Past Fund Performance: Research the historical performance of the mutual fund you’re considering to see how it has performed in the past. Past performance does not guarantee returns, but it can provide insight into how stable a particular fund is and whether it can be relied upon for the next five years.

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